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Zultys Said To File For Chapter 11 |
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Written by Adam Gosling
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Tuesday, 19 September 2006 |
VoIP equipment maker Zultys
Technologies has reportedly filed for Chapter 11 protections after failing
to secure the additional capital injection it required back in July.
The company was forced to downsize in August, but was able
to continue trading. IT then reportedly lost key sales and management staff in
the UK
before these latest reports that it has filled for Bankruptcy protection in the
Northern District of California.
The first creditors' meeting is said to be set for the 4th
October.
Zultys was initially founded in October 2001 by Iain
Milnes and employed more than 200 people at its height.
In early
August this year Milnes said that despite having to downsize by reducing the
workforce in its U.S. offices it was still "building and shipping products".
At that point he said the "scaled back" operation was profitable
which reduced the urgency for funding giving it time to find the "right
investment partner for a smaller round of funding".
By late
August more cracks began to appear as Justine Cross, EMEA business
development, UK country
manager Jackie Iddon and UK
field engineer, Tom Hassan, jumped ship to join a competitor.
Although Milne remained upbeat about the company's
prospects, the retreat to Chapter 11 means heavy handed cutting for Milne who
must find a way to make the company profitable.
There's more on the Zultys problems here and a link to a letter sent to the company's resellers.
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